Water bills to rise 6% from April

Average water bills are set to rise by 6% in April to around £473 annually for combined services according to suppliers’ trade body Water UK.

Water UK said, was below inflation and represents a real-term reduction since 2019, however, consumer body CCW urged the sector to go further in support of households struggling to pay. It said more companies should ‘put their hand in their own pocket’ to fund social tariffs as part of the industry’s promise to end water poverty.

CCW has called for action from water companies on the same day Water UK confirmed the average household water and sewerage bill in England and Wales will rise by about £27 to £473 from 1 April.

This is a 6 per cent average increase but regional variations and other individual factors – such as whether a customer is metered and how much water they use – means some households could face rises significantly above or below the average.

More than 2 million customers are receiving some form of support from companies with paying their water bill. This includes over 1.3 million low-income households in England and Wales receiving cheaper bills through companies’ social tariff schemes. These reduced bills for eligible customers by an average of £151 last year. However an even greater number of customers in need of help are slipping through the net, due to factors including low awareness and variations in eligibility criteria.

Five water companies are currently using some of their own profits to help fund social tariffs, which rely heavily on customer cross-subsidies. CCW wants the rest of the industry to join Welsh Water, Severn Trent, Yorkshire Water, SES Water and United Utilities in putting their hand in their own pocket.

Mike Keil, Chief Executive of CCW, said “Almost a fifth of households say they struggle to pay their water bill and these rises will heap even greater pressure on low-income customers. If water companies are serious about rebuilding trust in the sector they should use some of their profits to help people who cannot afford another bill rise.”

David Black, Ofwat CEO said “Over the last few years, the Covid-19 pandemic and the cost of living crisis have had a significant impact on household finances.

“While water bills will vary depending on the circumstances of each household, the average increase forecasted for 2024/25 will be £27.40, equivalent to about £2.30 a month. We are very aware, for those who are already struggling, this will be a real worry. As such, water companies must do all they can to protect those who are most in need of a helping hand.

“In Ofwat’s latest ‘Cost of Living’ research, we found that awareness of the support available, such as moving to a social tariff or on to a water meter, has continued to remain very low. We would encourage anyone who is worrying about how to pay a water bill to contact their water company and find out what schemes are on offer that could reduce bills, smooth payments, or help with debt.

“Through covid and the cost of living crisis, some water companies have consciously kept average bills lower than they would have been. Bills have remained below inflation easing the impact on customers, while continuing to invest in the network. This year, some of that previously withheld revenue has been added to bills, taking the average to 6.1% or £27.40 a year. Even accounting for this increase, bills in real terms will be lower than they were in 2019/20.”